Bottoming out and rebounding, the essence remains unchanged, waiting for a change in the market!

Market view: The focus of the index is still on the gains and losses of moving averages. Today there was a bottoming out and rebound, returning to the vicinity of the 5/10-day moving averages. If it can close back, it indicates that the bulls and bears are still in a balanced state. When the moving averages are converging, there will be no change. Patience is required to wait for a change in market direction. Currently, the 20-day moving average will continue to decline, exerting pressure on the index. However, if it can maintain the moving averages without breaking, especially next week, the pressure from the 20-day moving average will gradually weaken. The prerequisite is that the moving averages cannot be effectively broken. If this can be achieved, there should be no major issues, making it relatively favorable for bulls starting next week.

In terms of strategy, the oscillating index is not particularly important; the key is still on individual stocks, tracking directions where funds are involved.

For example, what is the "trial market line"? (Upper shadow + medium large bullish candle + strong volume at the bottom + breakout of the moving average), as shown in the picture.

Draw a line at the low point of the second day's pullback or the left support as a strong-weak reference. If the pullback does not break, it is strong; if it breaks, it is weak.